Groceries. Buying a new car. Paying off student loans. Hiring a new employee. Taking a much-needed vacation.
These are just a few of the ways Americans are using the bonuses and tax cuts they’ve received in the six months since the Tax Cuts & Jobs Act was signed into law.
Indiana has consistently been an example to the rest of the country of what pro-growth policies can do to spur job creation and increase opportunities for the people who live there. National tax relief has only made it better.
House Republicans from Indiana share what tax reform means for Hoosier families, workers, and small business owners. Check it out ↓
Rep. Susan Brooks
“Mr. Speaker, I rise today with a number of my colleagues from Indiana and Ohio, the great Midwest, to celebrate the six-month anniversary of the Tax Cuts & Jobs Act being signed into law. Our previous tax code was written more than 30 years ago and became broken, outdated, and overly complicated, and desperately needed to be reworked so Americans could receive much-needed relief. It was failing to support families with the resources they need in order to properly plan for their futures. Our tax code left those who were struggling to make ends meet behind. But on December 22, 2017, that began to change when the president signed H.R. 1, the Tax Cuts & Jobs Act, into law.”
“In six short months, the Tax Cuts & Jobs Act is already working for those who need it most, our country’s hardworking middle class families and workers, allowing Americans across the country, and in Indiana, to keep more of their income. For the typical family of four nationwide earning the median family income of $73,000, with this new law, they will now receive a tax cut of $2,059. In the Fifth District of Indiana—central Indiana, which I represent—the average family of four is saving even more than that, at about $2,590, and the average single person is saving about $1,716 dollars. These savings allow people to put money aside for things like continued education; payments toward a new home; and, overall, provide relief by making the cost of living just that much more manageable. Additionally, more than $4 billion in bonuses have been given out to employees all across the country—$4 billion. Our Nation’s unemployment has fallen to the lowest in 17 years, an unemployment rate of 3.8 percent as of May of this year.
“Market confidence is also high. Our economy is booming, with 63 percent of small businesses saying they feel optimistic about the direction of our economy and 77 percent of manufacturers are planning on hiring new employees. This is good news, because when our economy grows, everyone benefits.
“A constituent of mine from Pendleton, who owns a restaurant, recently told me that instead of having to shut down for several days for repairs when a vital piece of his kitchen equipment broke, he was able to purchase a newer, more efficient model and remain open thanks to the new expensing provisions in the tax law.
“I also heard from a Hoosier who came to D.C. with NFIB who is now able to provide his employees health insurance thanks to the savings he has seen through the savings for small businesses resulting from the Tax Cuts & Jobs Act. This critical benefit has helped him retain workers—he, I recall, had eight employees—and is allowing him to recruit even better talent to further grow his operations.
“These stories are just two of millions from across the country showing just how much tax reform changes people’s lives for the better and will provide certainty and optimism for much brighter futures. Still more good news is to come as Americans file their taxes next April for the first time using the new system.”
“…there are companies throughout Indiana, companies like First Merchants Bank, one of the first in Indiana to announce they were going to have an hourly wage increase and $500 bonus for non-senior management; a company in my district, one of the larger employers, Hoosier Park Casino, all employees received a $500 bonus after the Tax Cuts & Jobs Act was announced; Fifth Third Bank, $1,000 bonuses to over 13,000 employees, and they also raised the minimum wage.
“These are the types of stories that we have heard, whether it is from small companies or from large, national companies and companies that do business all across the country. They are competing for workers, and when they are competing for workers, the workers and the employees are winning because everyone is hiring and everyone is trying to compete…Mr. Speaker, I am very proud to have been a part of the passage of this historic Tax Cuts & Jobs Act…”
Rep. Jim Banks
“Mr. Speaker, when this body was debating the Tax Cuts & Jobs Act, we were told that 3 percent growth was impossible. We were told that the middle class and small businesses would not see any benefits. And we were told that manufacturing jobs would never come back.
“Mr. Speaker, all of these so-called experts were dead wrong. Since December, the U.S. economy has been growing at 2.9 percent and the Atlanta Federal Reserve bank estimates that growth this quarter will exceed 4 percent. This is hardly the ‘secular stagnation’ that so many on the left insisted was the inescapable future for the U.S. economy. The bottom line is this: the Tax Cuts & Jobs Act has unleashed record growth by lowering taxes on America’s families and businesses.
“When I am back home in northeast Indiana, I am constantly hearing good news as a result of tax reform. In Bluffton, 20/20 Plastics is increasing annual wages by $1,200 and looking to invest in new manufacturing facilities in 2019.
“In Fort Wayne, Quake Manufacturing is adding $1,000 bonuses and dental insurance for its employees. Hoosiers across northeast Indiana have experienced the benefits just from turning on their lights, as Northern Indiana Public Service Company requested that customers’ utility rates be lowered.
“It is no secret why this is happening: Washington is taking a page out of Indiana’s playbook. During my time as a state senator, I was proud to work with Governors Mitch Daniels and Mike Pence to significantly lower taxes on individuals and businesses. As a result, Indiana has one of the strongest economies in the country, with an unemployment rate of 3.2 percent and a labor force participation rate well above the national average.
“Unemployment claims are at a historic low, and Indiana consistently ranks as one of the top States for business investment and economic growth. For example, the annual report ‘Rich States/Poor States’ ranks Indiana as having the country’s third best economic outlook, while CNBC has consistently ranked the Hoosier state as one of the best places in the country to do business. Finally, Indiana continues to be a manufacturing powerhouse, with 536,000 Hoosiers employed in the industry, and this number will only grow thanks to the Tax Cuts & Jobs Act.
“Monthly manufacturing job gains have more than doubled under Republican control, with over two-thirds of manufacturers creating new jobs to fill. Even more impressive, 86 percent of manufacturing firms plan to increase capital investments thanks to the tax cuts passed by Republicans. As the district with the most manufacturing workers in the country, this is great news for Hoosiers as companies across northeast Indiana are hiring more employees and increasing wages.
“Additionally, 47 percent of U.S. small businesses plan to use their tax savings to increase business investments. We know from the data that there is a 99 percent correlation between business investment and wages, and there is no question that the Tax Cuts & Jobs Act has spurred business investment. This was the largest increase of wages since mid-2009.
“Mr. Speaker, some have said the good news has amounted to crumbs and have promised to undo all of the gains we have seen from tax reform. We owe it to the American people to make sure that that does not happen, but instead, we need to make these tax cuts permanent.”
Rep. Trey Hollingsworth
“Mr. Speaker…I am so glad that we are talking about the tremendous benefits that we have seen from the Tax Cuts & Jobs Act passed just over six months ago. During the last six months, we have heard a lot of impressive statistics about the national economy. We have heard about unemployment being down to 3.8 percent. We have heard about second quarter GDP being projected at in excess of 4 percent.
“We have heard about there being more available jobs than there are available workers in this country for the first time since the Labor Department has been keeping that statistic. It is really impressive what the national economy has been doing over the past six months, but what matters most to me and what matters most to Hoosiers back home in the Ninth District is, what it is doing for them; what it is doing for their small businesses; what it is doing for their pocketbooks; what it is doing for their families; and what it is doing for their communities.
“In Ellettsville, Joe said: Per month, my wife and I alone will receive over $200, and for our family, that really helps us out. That is groceries for an entire week.
“Down in New Albany, Will said: As a small business owner, I am now able to invest more in our company and employ more qualified people.
“These are just two stories of what I hear day in and day out when I am traveling about the district. When I go to townhalls, I hear about the tax reform. When I go to small businesses, I hear about the tax reform. When I go and visit families at their farms, I hear about tax reform’s impact. I want to ensure that we continue to see the impressive national statistics, but also continue to hear the great stories about how this bill, how the Tax Cuts & Jobs Act, made a difference in individual Hoosiers’ lives.